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    Calculate ABC Company's stock price after analyzing earnings and dividends

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    Week 4 - Problem 2

    Company ABC's earnings and dividends will grow at 0.5% monthly during the next five years.
    Its growth will stop after year 5. In year 6 and afterward, it will pay out all earnings as dividends.
    Assume next year's EPS is $10 and the dividend is $5 and the market capitalization rate is 9 %.

    What is ABC's stock price?

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